The Confident Indie Blog

The following is an excerpt from two emails I received in May from from a sculptor who made a donation of his art to a college. I'll call him Sam Sculptor.
From Sam:
It seems that you are too busy to deal with me. However I am in the process of donating about a [...]

June --
Charitable donations of services...are they deductible? Thanks!!
Diane
Bookkeeper
Temple, TX
Diane --
No, they are not.
As a bookkeeper it is oh, so important that you understand this. Please read all the posts in this topic -- donated services or products.
-- June [...]

Hello June,
I heard about your business from The National Psychologist. I am a psychologist in private practice.
Here's my question:
How do I calculate maximum deductions for Continuing Education expenses? Someone told me that for each hour spent in a CE pursuit it is allowable to deduct my hourly fee. This [...]

Hi again June,
You were nice enough to answer my question on your blog a year or 2 ago, so I'm back with another that I hope you can help with.
I have a small consulting psychologist practice in Virginia; I help the State determine whether or not disability claimants are medically eligible [...]

Hi June,
I really enjoy your newsletters -- Ways Through the Maze . I've been doing my own taxes for close to 20 years using Turbotax and it's predecessor, MacinTax. For many of those years, I was an employee with a part-time business. I'm now in business for myself publishing a local home improvement magazine. [...]

June --
Massage therapist , 1 year.
If I raise money doing massage and then write a check to a non-profit for the amount of the proceeds, is this considered a charitable gift and tax deductible if I am a sole proprietor (a personal deduction instead of a business deduction)?
Linda
Newton, [...]

Hello June,
I am from Medford, OR and although I work full time at a commercial printer, I wrote a book on college choices and am selling it for profit on top of my regular job. I just began.
I read your answer to No deduction for donated work or services
but I [...]

In my September Ways Through the Maze I presented info on indies donating their time, services or products. You can read it here.
Today I received the following questions on that the topic.
Hazel, of Organized for Life, asks:
Someone I know "donates" services by arranging that the organization will pay her and [...]

June:
I'm from Las Vegas, NV, and I own a production company.
We have recently been asked to have our photobooth at a Lance Armstrong Foundation event coming up in May and was trying to see if it was considered a tax deduction and what I would need to have the proper documentation [...]

Hi June,
Got a twist on the question re taking a donation for charitable services.
I get why time isn't deductible. However, I recently coded a website, created some training materials and did a training for a non-profit (getting just a fraction of my usual rate - and donating the rest).
Don't [...]

June --
I am an Athletic Trainer/Strength & Conditioning Specialists as an indie for 3 years.
I had a question and I could not find the answer on your blog so I was hoping that you might be able to shed some light on something for me. I am an independent contractor, indie, [...]

June--
I was viewing your post No deduction for donated work or services.
I have been developing a website for a non-profit free of charge. While I understand that I cannot claim the time as 'service donated'... The website itself, or the files, are tangible real world items, as a pair of shoes or [...]

June,
I am currently living in Brazil and working as a volunteer social worker. I'm not in it to make a profit. I'm in it to make a difference. My income consists of donations given from individuals. Some donors send their gifts to a non-profit organization which then deposits that donation into my bank [...]

Hi June,
A number of friends and I would like to start a venture whereby we sell handmade products and donate 100% of net proceeds to a well-established charitable organization. We do not plan to make any profit.
I have questions regarding tax implications on us and if we should or have to [...]

Dear June,
As an independent composer, one of my revenue sources is from the sale of my sheet music. I occasionally give away copies of my sheet music as a way of nurturing relationships with prospective commissioning clients. Digital technology makes this a simple and inexpensive way for me to reach out and keep [...]

Hi June,
I am a mixed media artist, self employed part time for 3 years and this is the first year as a full time artist.
I am donating a piece of art to a non profit. I know I cannot take a "fair market price" deduction. Can I deduct the cost of [...]

Hi June,
I stumbled upon your FAQ while searching whether services donated can be deducted. You explained it nicely.
Question: Is it legal if I donated $1000 cash to a 503c and then got paid for my services by the 503c?
I realize that I'd still be out a good percentage because [...]

June --
I've just received a summons for Jury duty. Can I deduct any lost income due to my Jury service?
Thanks,
Steve
Hi Steve,
No, you can not take any deduction. In a way you are donating your time and services to the public.
Here's three posts [...]

June --
I am a therapist. I notice that many doctors and dentists bill patients for an amount greater than the amount requested from the patient, then show the difference on the statement of account as a "write-off." Is this a write-off for their federal tax return?
I frequently "slide" my [...]

June --
As a self-employed attorney, ordinarily I would charge my travel time to a client, usually at my full billable rate, but sometimes at a reduced rate. I spent several months last year working at a temporary work location as an independent contractor responsible for reviewing my clients' contracts, and negotiating and drafting [...]

Dear June,I'm doing some freelance consulting work for a nonprofit organization.The work has gone over budget and they cannot afford to pay me to finish the work. They offered to count the value of my work as a tax deductible donation. Is this Kosher and how do I handle it?
Ken, Graphic Designer in Massachusetts
[...]

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